Talks between French liner, CMA CGM, and the Bolloré proprietor and multi-billionaire, Vincent Bolloré, are well advanced. The aim of the potential investor is to acquire the entire transport and logistics division of the Bolloré conglomerate, and thus the core activities of the company. Market experts estimate the value of the deal at EUR 5 billion.
Following the acquisition of Bollore’s logistics business in Africa by Swiss shipping line, MSC, in a EUR 5.7 billion purchase agreement completed on 22DEC22, the French freight forwarding giant
may now divest itself of further key businesses. This is very likely, provided the negotiations with French shipping line Compagnie Générale d’Affrètement – Companie Générale Maritime (CMA CGM)
to take over Bolloré’s transport and logistics division are successful.
News strategic focus
Bolloré’s logistics unit, which is ranked among the top 10 worldwide, runs 360 offices in roughly 150 countries and employs nearly 15,000 people. Its sale would be further proof of Bolloré
management’s strategic U-turn aimed at scaling down transport activities or stepping out of this business entirely and expanding the Telecommunications, Entertainment and Hi-Tech sector
instead.
What works in Africa, works everywhere
In the recent past, the 1822 (sic!) incepted company had already established a strong foothold in this vertical market. This is best illustrated by its investments on the African continent where
Bolloré’s Telecom division is achieving high growth rates, exemplified by its TV offshoot, Canal+. Spurred by this success, new channels were founded. Among them: Malagasy, Wolof, or Amharic.
Some of them broadcast in local language, resulting in high acceptance by the local population and increasing market penetration, particularly in Françafrique.
The Puteaux, near Paris-based Group's new strategic focus, was also reflected last October in the appointment of Chris Jacobs, as Global VP High-Tech & Telecom.
The CMA CGM-Bolloré talks are exclusive with 08MAY23 set as deadline date. “The negotiations are in line with the CMA CGM Group’s long-term strategy, based on two core pillars: shipping and
logistics. Our group’s strategy is to offer end-to-end solutions in support of our customer’s supply chain needs,” the French liner stated.
Bulging coffers
CMA CGM's pockets are filled to the brim, thanks to exorbitant profits during the pandemic, reaching EUR 22.6 billion in fiscal 2022. The development of the French shipping line into a one-stop
logistics service provider, reduces its dependency on the extremely volatile shipping business, stated Chief Executive, Rodolphe Saadé, some time ago. This realization led to the takeover of
Gefco, a French auto transport company previously co-owned by Russian Railways (RZD) and carmaker Stellantis (STLA.MI). That deal was given the green light by the European competition watchdogs
on 25JUL22. Next, CMA CGM bought 9% of Air France-KLM, worth about EUR 240 million, which led to the founding of an air freight arm named CMA CGM Air Cargo. Meanwhile, the newcomer has leased
four Airbus A330-200 freighter aircraft and two Boeing B777F, with most of them operated and marketed together with AF Cargo and KLM Cargo (CargoForwarder Global reported: https://www.cargoforwarder.eu/2023/04/03/breaking-news-air-france-klm-and-cma-cgm-finally-join-forces/
)
Back to the fate of Bolloré’s global logistics and transport unit. Both parties emphasized last week that the deal is not yet done. CMA CGM stated that “the negotiations in no way guarantee
an acquisition in the end.” And Bolloré assured that the outcome of the negotiations “will be communicated in due course.”
Using muscle power to combat global warming
Of much smaller scale is Bollore's announcement that it has begun deploying cargo bikes at Hamburg Airport. The electric bicycles of producer “mocci's Smart Pedal Vehicles”, are aimed to
replace transport by vans and trucks used on day-to-day business from the airport to nearby customers such as the Airbus Maintenance, Repair, and Overhaul unit (MRO), or Lufthansa Technik.
Between these companies and the airport there is a constant flow of spare parts, tools, and documents.
The cargo bike initiative was triggered by Bolloré’s fight against climate change. It aims to improve air quality and protect nature by reducing CO2 emissions. “This pilot is just the
beginning. We want to continue to actively improve our carbon footprint, in Germany and together with mocci, and also drive forward other potential projects with major customers and
partners,” says Bolloré Logistics Germany Managing Director, Tobias Deil.
Heiner Siegmund
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